Analysis shows $45 billion in stimulus investment would add $174 billion to Florida’s gross state product, a four-fold return on investment; increase tax revenues; create jobs; and deliver annual savings to consumers
TALLAHASSEE, October 22, 2020 – Today, national business group Advanced Energy Economy (AEE) released results of a report that quantified significant economic benefits associated with investments in advanced clean energy deployment for the state of Florida. The report, which was produced by international economics consultant Analysis Group for AEE, used an industry-standard modeling tool to estimate the impact of investing potential federal stimulus funds in advanced energy technologies, products, and services to boost economic activity in the wake of the COVID-19 slowdown.
The full report “Economic Impact of Stimulus Investment in Advanced Energy: An economic assessment of applying stimulus funds to advanced energy technologies, products, and services in Florida,” is available here.
“As Florida, like the rest of the nation, suffers the economic impacts of the coronavirus health crisis, this report shows investment in advanced energy delivers a solid four-fold return to our state’s economy, creating in-state jobs and additional tax revenues,” said Ebo Entsuah, policy principal at Advanced Energy Economy. “Such public stimulus also attracts billions of dollars in private investment and saves consumers — commercial and retail alike — billions annually.”
“By investing in energy efficiency and solar energy, while accelerating the shift to electrified transportation, we can generate significant economic activity in the state’s hardest hit communities while also helping Florida transition to cleaner energy resources,” added Entsuah.
Specifically, the report shows that a hypothetical investment of $45 billion of public investment dollars in Florida, allocated across a range of advanced energy technologies, would produce the following economic benefits:
- Adding a total of $174 billion to Florida’s economy (Gross State Product), a four-fold return on the investment.
- Attracting $115 billion in complementary private investment, a contributor to GSP impact above.
- Creating 1.5 million new jobs, measured in job-years, resulting in a mix of short-term construction or installation employment along with ongoing positions;
- Increasing tax revenues by $10 billion to local and state governments; and,
- Saving consumers $5 billion in energy costs annually.
The report found that energy efficiency investments delivered the greatest overall boost to the Florida economy, totaling $59 billion in Gross State Product, and the most jobs (463,000 job-years). The next biggest impact came from solar energy generation, totaling $43 billion, and 297,000 jobs. Investments in electric transportation – electric vehicles and associated charging infrastructure – would contribute $35 billion in economic activity and create 341,000 job-years of employment.
In terms of consumer savings, energy efficiency investments produced the greatest benefits. For residential customers, energy efficiency would save $1.9 billion per year and rooftop solar $840 million annually. Commercial and industrial customers would save $1.3 billion per year from energy efficiency upgrades and onsite solar. Switching from gasoline-powered vehicles to electric would save drivers $840 million in fuel costs.
The report notes that a greater or lesser level of stimulus investment would result in greater or lesser economic impact, but the modeling shows that advanced energy stimulus investments can generate important and positive economic benefits in the state of Florida, adding substantial value to the Florida economy, creating millions of jobs, and sending additional revenue to state and local governments.
“Florida is well-positioned to leverage the economic benefits of advanced energy technologies, particularly in efficiency, solar energy, and electric vehicles,” said Entsuah. “With more than 180,000 employed in the sector and a broad range of established companies, we can ensure advanced energy is a reliable economic driver for years to come, while delivering secure, clean, affordable energy for all.”
AEE’s Florida Jobs fact sheet shows there were 182,100 workers employed in Florida’s advanced energy industry in 2019, more than those working in real estate and triple those in agriculture across the state. The sector experienced strong 5% jobs growth last year – more than twice the rate of overall state job growth – and employers reported they expected a 2% increase in jobs in 2020 before COVID-19 hit*.
*NOTE: Employment data was derived from the 2020 U.S. Energy and Employment Report produced by the Energy Futures Initiative (EFI) in association with the National Association of State Energy Officials (NASEO) and collected and analyzed by BW Research Partnership, as well as data from the U.S. Bureau of Labor Statistics.
About Advanced Energy Economy
Advanced Energy Economy (AEE) is a national association of businesses that are making the energy we use secure, clean, and affordable. Advanced energy encompasses a broad range of products and services that constitute the best available technologies for meeting energy needs today and tomorrow. AEE’s mission is to transform public policy to enable rapid growth of advanced energy businesses. Engaged at the federal level, in Florida and more than a dozen states around the country, AEE represents more than 100 companies in the $238 billion U.S. advanced energy industry, which employs 3.6 million U.S. workers. Learn more at www.aee.net, track the latest news @AEEnet.